Advance Auto Parts, Inc. recently announced increased sales and earnings for the fiscal third quarter ended Oct. 6, 2007. The company reports increased earnings per diluted share, as well as increased sales and comparable-store sales, and attributes the improvement to continuous efforts to stay on track with previously announced restructuring initiatives.

"Although we anticipate it will take time, we believe the results of those initiatives are beginning to have a positive impact on our sales, earnings, and return on invested capital," says Jack Brouillard, the company's chairman, president and CEO.

The company's third quarter gross margin was 47.9 percent of sales, a 28 basis point decrease compared to last year. The decrease was primarily due to a less favorable merchandise sales mix as compared to last year. In addition, fewer discounts were earned as merchandise purchases were less than year ago levels and the company had a greater proportion of commercial sales.

Third quarter selling, general and administrative (SG&A) expenses were 39.3 percent of sales compared to 38.9 percent last year. Excluding severance and asset write-off costs, SG&A expenses were 38.7 percent, a decrease of 18 basis points as compared to last year.

Year to date sales increased to $3.80 billion from $3.60 billion last year. Year to date comparable-store sales increased 1.2 percent comprised of a 0.4 percent decrease in do-it-yourself (DIY) and a 6.2 percent increase in do-it-for-me (DIFM). The year to date 1.2 percent comparable-store sales increase compares to a 2.3 percent increase last year.

Year to date earnings per diluted share were $1.92, compared to $1.82 last year. Year to date gross margin was 48.1 percent of sales, a 29 basis point improvement from last year. Year to date SG&A expenses were 38.8 percent of sales as compared to 38.4 percent in 2006, a 41 basis point increase.

During the third quarter, Advance Auto Parts opened 43 new stores, of which 4 are Autopart International (AI) stores. The company also relocated 5 stores and closed 2 stores. Year to date, the company has opened 156 new stores, of which 17 are AI stores. The company has also relocated 24 stores and closed 10 stores.

Advance Auto Parts forecasts fourth quarter earnings per share in the range of $.36 to $.40 as compared to $.33 last year, an increase of 9 percent to 21 percent. This guidance is based on comparable store sales growth of 0 to 2 percent. Gross margin is expected to be in line with fourth quarter last year. SG&A expenses are expected to leverage within the 0 to 2 percent sales guidance.

The company anticipates full year 2007 earnings per diluted share to be in the range of $2.28 to $2.32. Excluding the severance costs and asset write-offs of $.04 per share incurred in the third quarter, earnings per diluted share for the year are expected to be $2.32 to $2.36 as compared to $2.16 last year, an increase of 7 percent to 9 percent. The company expects free cash flow for the year to be in the range of $200 to $220 million.

For more information about Advance Auto Parts, visit the company's Web site.